IPC Global Advocacy Report

1/28/2022

Dear IPC Members:

As I write this, your IPC Government Relations team members are concluding another successful IPC APEX EXPO. If you were in San Diego with us, we hope you enjoyed getting together with your electronics manufacturing colleagues, and we look forward to seeing you soon! Check out some of the top moments on IPC’s LinkedIn and Twitter.

Below are the latest highlights of our current work for you, boiled down to less than 30 seconds each and five minutes overall. As always, we welcome your questions and suggestions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK

  • New Report Warns U.S. Electronics Mfg On “Brink of Extinction”
  • House Releases U.S. Tech and Competitiveness Bill
  • Commerce Aims To Address Chip Supply Shortage

QUOTE OF THE WEEK

 IPC ADVOCACY & YOU

  • IPC to Hold Virtual IMPACT Washington, D.C. Event in March
  • Which Government Policies Worry You Most?

 ASIA

  • India Unveils Plan to Grow Electronics Manufacturing Industry

ENVIRONMENT AND HEALTH

  • Lead Considered for Inclusion on REACH Authorization List
  • Share Your Input with European Chemical Regulators

EUROPEAN UNION

  • EU Due Diligence Proposal May Include Product Withdrawal Mechanism
  • European Chips Act Slated for February Release

TRADE AND SUPPLY CHAIN

  • IPC Advocates for Transatlantic Cooperation on Resilient Supply Chains
  • Intel Makes Major Manufacturing Investment in United States

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US


TOP NEWS OF THE WEEK

New Report Warns U.S. Electronics Manufacturing On “Brink of Extinction”: A new report from IPC’s Thought Leader Program warns that the United States has lost its historic dominance in printed circuit boards (PCBs), and the lack of any significant U.S. Government support for the sector is leaving the nation dangerously exposed to foreign dominance of the electronics supply chain. Please let us know if you have any thoughts or questions. IPC Contact: Chris Mitchell.

House Releases U.S. Tech and Competitiveness Bill: The U.S. House of Representatives released a bill this week designed to bolster “U.S. semiconductor manufacturing and competition with China, including $52 billion to support domestic chip research and production,” MSN reports. The legislation, called the America Competes Act, is a companion bill to the U.S. Innovation and Competitiveness Act (USICA), which the U.S. Senate passed in June. IPC is actively engaged on this bill and will have more information to share with you in the coming days. IPC Contact: Chris Mitchell.

Commerce Aims To Address Chip Supply Shortage: The U.S. Commerce Department is taking new steps to ensure a robust domestic semiconductor industry. According to a new Request for Information (RFI), Commerce is seeking to incentivize investment in semiconductor manufacturing facilities and associated ecosystems and support research related to advanced packaging. IPC will provide comments. Meanwhile, a new Commerce report warned that, late last year, U.S. manufacturers had less than five days’ supply of some chips on hand, leaving them vulnerable to disruptions in deliveries, The Washington Post reports. Chips cannot function on their own; recent IPC studies have found the U.S. Government should pair its investments in semiconductor manufacturing with funds for advanced packaging, PCBs, and related technologies. Let us know if you have any questions. IPC Contact: Ken Schramko.


QUOTE OF THE WEEK

“The PCB fabrication sector in the United States is in worse trouble than the semiconductor sector, and it’s time for both industry and government to make some significant changes to address that.”
Joe O'Neil, principal of OAA Ventures and member of the IPC Thought Leaders Program, comments on his new PCB industry report, available now.

 

IPC ADVOCACY AND YOU

IPC to Hold Virtual IMPACT Washington, D.C. Event in March: IPC’s next U.S. advocacy event – IMPACT Washington, D.C. – will take place in March, but it will be virtual only due to COVID. We had planned for an in-person IMPACT, but due to uncertainty about the pandemic and the Omicron variant, policymakers are unlikely to take meetings with large groups at that time. More details are coming soon. IPC Contact: Ken Schramko.
 
Which Government Policies Worry You Most? As we plan our GR activities for the year, we want to know how the IPC Government Relations team can best advocate for you now and in the future. Throughout 2021, we asked IPC members about the key challenges they are facing. Cory Steeby of Holland, MI cautioned that “tariffs are an ongoing additional tax on U.S. manufacturing companies,” and that “the electronic component and bare PCB supply chains are broken.” Let us know your top concerns via this five-minute, five-question survey. IPC Contact: Chris Mitchell.

 

ASIA

India Unveils Plan to Grow Electronics Manufacturing Industry: The Indian government released a plan this week aiming at developing and investing in the country’s electronics manufacturing sector, MSN reports. The plan, which aims to grow India’s electronics manufacturing sector to $300 billion by 2026, also outlined challenges affecting the industry, including tariffs and regulatory uncertainties. This is a great example of a government that is investing time and money into the success of its electronics manufacturing industry. IPC Contact: Chris Mitchell.

 

ENVIRONMENT & HEALTH

Lead Considered for Inclusion on REACH Authorization List: Lead (Pb) metal is one of eight substances proposed for inclusion on the European Commission’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Authorization List. A three-month public consultation by the European Chemicals Agency (ECHA) is expected to begin in early February. IPC will continue to coordinate with industry stakeholders on communication regarding this regulatory activity. Let us know if you would like to learn more. IPC Contact: Kelly Scanlon.

Share Your Input with European Chemical Regulators: The European Commission is currently accepting input on revising the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) Regulation to better reflect the ambitions set forth in the Chemicals Strategy for Sustainability. The consultation period is open through April 15.  If your company is interested in participating in the consultation, please let us know. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

EU Due Diligence Proposal May Include Product Withdrawal Mechanism: The European Commission is considering outlawing goods made with forced labor through a product withdrawal mechanism as part of its upcoming Sustainable Corporate Governance (SCG) proposal. Whether to regulate directors’ duties is also still being debated. The proposal, set to be published on February 15, will introduce mandatory environmental and human rights due diligence rules for all companies operating within the European Union. IPC is continuing to engage with EU policymakers to ensure that the legislation is feasible and minimizes the administrative burden for our member companies. IPC Contact: Alison James.

EU Chips Act Slated for February Release: The European Commission is set to present legislation in early February that would improve the bloc’s semiconductor and microchip production. The draft legislation, called the EU Chips Act, is expected to align research and development (R&D) across the bloc, coordinate funding, and create a “state of the art ecosystem” for microchip producers. Let us know if you have any questions. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

IPC Advocates for Transatlantic Cooperation on Resilient Supply Chains: IPC recently made the case for a resilient electronics manufacturing ecosystem and further investments in advanced packaging at the inaugural meeting of the European Commission’s consultation on secure supply chains. IPC supports investments to stem the chip shortage, but if the EU and U.S. governments want to achieve greater innovation, resiliency, and security, they must also build up the entire electronics manufacturing ecosystem. Read our full recommendations to the EU-U.S. Trade and Technology Council (TTC) in a new IPC blog. IPC Contact: Alison James.

Intel Makes Major Manufacturing Investment in United States: Intel’s new chip manufacturing site near Columbus, Ohio is set to be “the largest silicon manufacturing location on the planet,” MSN reports. The $20 billion move could prove to be a locus of economic opportunities for the electronics supply chain in the region. Let us know if you have any thoughts or questions. IPC Contact: Ken Schramko.

 

HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

“The velocity of change poses a unique challenge to manufacturers that must be embraced with purpose and passion – or risk irrelevancy and ultimately insolvency in today’s cutthroat global marketplace.” John W Mitchell, IPC president and CEO presented his keynote address at IPC APEX EXPO 2022.

Commenting on new industry intelligence, Shawn DuBravac, IPC’s chief economist, states “Growth rates in 2022 will generally be higher than they were headed into the pandemic.” IPC’s February economic update and global electronics manufacturing supply chain sentiment reports now available.

 

KEEP IN TOUCH WITH US

Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

 

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